C7P - Fund 71st St Palm Tree Lights

Resolutions - C7 P

COMMISSION MEMORANDUM

RECOMMENDATION

The Administration recommends: (1) submitting a budget request in the amount of $130,000 in the FY 2026 budget cycle to cover the costs, (2) requesting a bid waiver to engage R&D Electric, Inc. to perform the work, and (3) placing a referral to the North Beach CRA Board to discuss funding that may be available that can be applied towards these costs.

The Administration also recommends that while considering funding the installation of wrap- around palm tree lights with amended locations, it also carefully considers several critical factors that will significantly impact the General Fund budget, beginning in FY 2026:

1. The City’s increasing unfunded capital improvement program 2. Long-term General Fund financial projections indicating a potential shortfall in upcoming fiscal years 3. The passage of Amendment 5 in November 2024, which increases the homestead exemption and further constrains the growth of taxable property values

These considerations are essential to ensure that decisions regarding the funding of wrap-around palm tree lights align with the City’s broader long-term financial stability and strategic priorities. If the Committee recommends funding this project, the Administration recommends it be considered as part of the FY 2026 budget process

BACKGROUND/HISTORY

On November 20, 2024, at the request of Mayor Steven Meiner, the City Commission approved item C4 I, a referral to the Finance and Economic Resiliency Committee ("FERC") to discuss the extension of wrap-around palm tree lights to 71st Street, from east of the Normandy Fountain to Collins Avenue.

The Normandy fountain and its surroundings have undergone many upgrades in recent months including the replacement of outdated lighting with Light-Emitting Diode ("LED") fixtures, and wrap-around palm tree lights along 71st Street. Mayor Meiner would like for FERC members to consider extending the wrap-around palm tree lights on 71st Street, from east of the Normandy Fountain to Collins Avenue, to further beautify the area, increase safety for residents and visitors, and attract pedestrian traffic to the businesses on Collins Avenue.

This discussion was scheduled to be heard at subsequent FERC meetings following the referral, however, it was not reached. It was scheduled and heard on March 26, 2025.

On March 26, 2025, the Public Works Department presented FERC members, the cost estimates from one of the City’s authorized vendors, R&D Electric, Inc. for wrap-around palm tree lights on 71st Street, from east of the Normandy Fountain to Collins Avenue. The estimated amount for the installation, materials and labor was $105,286, plus one (1) year maintenance in the amount of $23,280, for a total cost of $128,567 ("Attachment A"). There will be a potential 10% maintenance fee increase per year (i.e. year one (1): $23,280; year two (2): $25,608; year three (3): $28,169), currently unfunded.

The Administration recommended placing a funding request in the amount of $130,000 in the FY 2026 budget cycle to cover the costs and approve a bid waiver to engage R&D Electric, Inc. to perform the work. The bid waiver request is to select this specific vendor, and approval of these services exceeding $100,000 (above the City Manager threshold of approval) without a competitive procurement process, allowing for the completion of the wrap-around light installation in an expedited manner. Otherwise, a regular competitive procurement process could take an estimated 4-5 months to complete.

FISCAL IMPACT STATEMENT $130,000 for lighting installation, materials and labor and a one (1) year maintenance fee, currently unfunded

CONCLUSION

The Administration recommends: (1) submitting a budget request in the amount of $130,000 in the FY 2026 budget cycle to cover the costs, (2) requesting a bid waiver to engage R&D Electric, Inc. to perform the work, and (3) placing a referral to the North Beach CRA Board to discuss funding that may be available that can be applied towards these costs.

Applicable Area

North Beach

Department

Public Works

Sponsor(s)

Mayor Steven Meiner

Co-sponsor(s)

Commissioner Kristen Rosen Gonzalez Commissioner Alex Fernandez Commissioner Tanya K. Bhatt Commissioner David Suarez Commissioner Laura Dominguez

Condensed Title

Accept Rec/Consider Funding Wrap Around Palm Tree Lights in N Beach. (SM/KRG/AF/TB/DS/LD) PW

Previous Action (For City Clerk Use Only)